Tag Archives: Infraestructura Educativa PPP

SBC

Jedburgh Intergenerational Campus – financial close

As financial transaction advisers to Scottish Borders Council on their Jedburgh Intergenerational Campus project, we are pleased to report that Financial Close was achieved on 25 October.

The new £32 million education campus will replace three existing schools in the town and will include #nursery, #primary, #secondary, and further educational facilities.

The project is being delivered in partnership with hub South East Scotland using the standard Scottish PPP/DBFM structure, and achieved financial close 13 months after the business case (known as the New Project Request) was approved.

This successful project continues our relationship with the Council, having previously advised them on the development of the new Kelso High School which achieved Financial Close in February 2016 and which opened on time and budget in November 2017.

Colombia Investment Roadshow

Colombia Investment Roadshow

This week, on 21 and 22 May 2018, we attended the first Colombia Investment Roadshow in London, a joint event whose organisers included British & Colombian Chamber of Commerce; the British Embassy in Bogotá; the Department of International Trade teams in Colombia and London; The Foreign and Commonwealth Office Andean Desk and the Prosperity Fund Colombia; The Colombian Embassy in London and Procolombia.

The purposes of the event were to present the key infrastructure projects in Colombia, to explain the investment environment and to support joint initiatives to address some of the challenges that are still experienced in the sector and in the country.

A series of speakers explained the economic backdrop and investment outlook in the country, and provided personal perspectives on experiences of developing projects there.  Key projects in rail, rolling stock, Smart Cities, schools, healthcare, waterways, airports and water treatment were described in detail, including explanations of the procurement process and the roles of the main protagonists.

The main points we took from the event were:

  • the prospect of imminent accession to the OECD provides evidence of the rigorous process of reforms, policy and regulatory improvements that have been implemented. Between 2010 and 2017 the economy grew an average of 3.8% a year and it has one of the highest levels of foreign direct investment in the region;
  • the final peace agreement concluded with FARC in December 2016 brought to an end half a century of armed conflict, and saw the start of a 15 year implementation period;
  • improved connectivity and the development of Smart Cities are key to the successful implementation of the peace agreement.  A large transport infrastructure initiative has been launched to tackle infrastructure bottlenecks that are holding back development, especially in rural, conflict-affected areas;
  • in 2017 the Economist Intelligence Unit singled out Colombia as being well-prepared for infrastructure PPPs in the region. Forms of PPP are being used for the Bogotá Metro, renewal/operation of the Transmilenio BRT system, Cauca road network, El Dorado II Airport and to restore navigability of the Magdalena River.  Pilot PPPs are being developed for schools and hospitals in Medellín, Barranquilla and Bogotá.

At Caledonian Economics we look forward to building on existing relationships in Colombia and developing new ones, so that we can play our part in the continuing success of this remarkable country and helping create, as one speaker put it, “a piece of the peace”.

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Uruguay XXI Event

On 18 May 2018 Martin Finnigan joined around 50 delegates at the Why Uruguay? event at Tower Bridge, London, organised by Uruguay XXI (the National Investment and Export Promotion Agency), the Department for International Trade, and the Embajada Británica Montevideo.

Presentations by representatives from Embassy of Uruguay in London, the British Chamber of Commerce in Uruguay and Uruguay XXI described the key strengths of the Uruguayan economy and explained the many incentives that make it an ideal hub for companies wishing to enter and trade throughout Latin America.

The main points we took from the event were:

• it was the first country in the world to provide laptop computers to all primary and secondary school pupils, and to all teachers. Smart Cities, Smart Towns and Smart Education concepts are at the heart of schooling.  Language skills are good, all teachers have access to English tuition and a significant number of Portuguese speakers helps companies trade with Brazil;

• the country has high standards of transparency, strong institutions and is committed to investment in knowledge: facts I can relate to in my own experiences working in Uruguay;

• income per person is the highest in Latin America and Uruguay’s fifteen straight years of GDP growth far outstrip the performance of its massive neighbours, Brazil and Argentina;

• the country has implemented strategies that make it a very attractive location for companies seeking to establish a hub for goods and services in the region. Examples include excellent internet connectivity, free ports and free airports, no restrictions on repatriation of profits, no discrimination between overseas and domestic investors, unrestricted forex market, single taxation system throughout the country, and slick procedures for setting up a company.

For our part, it is good to see that the Education PPP program, which we helped develop, has recently issued invitations to tender for the fourth bundle of schools.

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Asian Development Bank – Learning from Scottish Education PPP models

The Asian Development Bank has published our article on Scottish Education PPP models and how they could be applied in the bank’s sphere of operations. In this blog we:

  • look at reasons why PPP is less widely adopted as a development model for education infrastructure compared to other sectors such as energy, transport and utilities;
  • consider the benefits that wider adoption of PPP could bring;
  • describe innovative structured that have been developed in Scotland; and,
  • suggest how they might be structured and deployed in the region.

The full article can be accessed on Asian Development Bank Blog.

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Uruguay – Management of Operational PPPs

On October 9 and 10 2017, Martin Finnigan participated an inter-institutional seminar on Control and Monitoring of PPP Contracts, at the invitation of Ministry of Economics and Finance of the Government of Uruguay and the British Embassy.

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Presenting alongside Dr. Patricia Benavente (Peru) and Inspector of the Contract of UPPL No. 1 Bernardo Vidal (Uruguay), I delivered two sessions that explained the relevance of the Scottish PPP experience to Uruguay.

The event was attended by over 50 professionals with an interest in PPP in Uruguay including central government agencies, service delivery bodies, investors and funders.

I developed a theory of the forces the drive the evolution and development of PPP in an economy, and noted how managing a PPP pipeline demands the ability to adapt to foreseeable changes in the external environment, and cope with unexpected ones.

I also identified lessons we have learned in Scotland over 20 years of PPP, and interpreted these in the Latin American context.  Finally, I presented our report on the management of operational PPPs in the social infrastructure sector.

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Perth & Kinross – New Bertha Park High School Financial Close

The procurement of the new Bertha Park High School by Perth & Kinross Council reached financial close on 27 September 2017 . Built to accommodate pupil generated by the rapid expansion of the city, the new school will be developed under a single compact PPP contract between the Council and  hub East Central Scotland.

As the public sector Financial Transaction Adviser on this PPP we supported the Council’s in-house team and were responsible for assessing financial submissions from the private sector partner. This included confirming that returns, margins and fees are in line with the market and consistent with pre-agreed levels.  We worked closed with technical specialists to calibrate the payment mechanism, and supported commercial negotiations.

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Caledonian Economics Review of Operational PPP Projects

Caledonian Economics helps Local Authorities, Health Agencies and National Government develop and deliver excellent PPP projects.  We work at all stages of the PPP process: PPP strategy development, business cases, financial modelling, transaction support, Operational PPP performance improvement, rescue of distressed projects, and Public Sector training and capacity building.

Many of the projects we have supported have been open and operating successfully for ten years or more.  The senior public sector officials who have been responsible for these projects are  uniquely experienced to comment on the most effective approaches to long term management of PPP projects.

We spoke to ten of these public sector professionals, asked about their experiences, and discussed what advice they would give to new projects, now and in the future.

In our new report on Operational PPP projects, we ask seven key questions about the effectiveness of PPP Management, and identify important lessons.  You can read what we found out in our new report by downloading it here: Caledonian Economics Report on Operational Projects.

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PPP in Scotland and Uruguay – APP en Escocia y Uruguay

Scotland and Uruguay have much in common including a strong ethic of equality and social justice.

As Uruguay begins a programme of school PPP projects, Martin Finnigan was invited by Sunny Sky Solutions to give his thoughts on what this charming Latin American country might earn from the Scottish experience.

Click here to read more.

Escocia y Uruguay tienen mucho en común, incluyendo una fuerte ética de igualdad y justicia social.

Mientras Uruguay comienza un programa de proyectos APP escolares, Martin Finnigan fue invitado por Sunny Sky Solutions a dar sus pensamientos sobre lo que este encantador país latinoamericano podría ganar de la experiencia escocesa.

Haga clic aquí para leer más.

 

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Government of the Republic of Uruguay

Working with Castalia Strategic Advisers and with support from the Inter-American Development Bank we advised the Government of Uruguay and Corporación Nacional para el Desarrollo (CND) on the development of financial and technical aspects of the Uruguayan early years education PPP programme.  This will create up to 60 kindergartens and family support centres to support the national poverty reduction and social inclusion policy.

Our responsibilities included project  financial modelling, international best practice studies and the development of bespoke technical documentation which drew on our extensive experience of PPP transactions and implementation.

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Latvijas Pašvaldību savienība (LPS), Latvian Association of Local and Regional Governments

Working with LPS, we delivered a half day seminar and web broadcast to around seventy representatives from Latvian municipalities and local government bodies.  The Webinar described the Scottish experience of PPP, its evolution to meet the particular social aspirations of the nation, and its relevance to other states of similar size and latitude.